Message

¡Oops!

Share!

The creation of an independent regulatory body is the next step in the move towards developing nuclear energy capacity in Chile, according to deputy energy minister Jimena Bronfman.

"This is a long process involving three phases," Bronfman said in an interview on Chile's Radio Cooperativa radio station. "We are in the first stage, a stage of analysis and auto-evaluation. In 2008 and 2009, we did nine separate studies on the feasibility of nuclear power in Chile. The next step is to create a nuclear regulatory framework, separate and independent of other regulatory bodies."

Chile is following International Atomic Energy Agency (IAEA) guidelines, according to Bronfman. The IAEA has said it will comment on Chile's nuclear self-assessment test by the end of 2010.

Energy minister Ricardo Raineri said last week on a visit to the US that there would be no decision on nuclear power during the current government of Sebastian Piñera.

"Our mission is to have energy security," Bronfman said. "To diversify the matrix and not depend on one sole supply of power. That is why we are considering the nuclear option. But we don't think nuclear power would be necessary until 2024."

"So no, we will not make a decision during this government. We are simply continuing the process," she continued.

The possibility of nuclear power in Chile was brought into the spotlight again after the 8.8 magnitude earthquake that struck the south-center of the country on February 27. Many feared that nuclear installations would not be able to handle a similar event.

The director of Chile's nuclear commission CCHEN, Fernando López, argued that this was not a concern.

"Nuclear installations are made with high security standards to withstand earthquakes," he said on Radio Cooperativa.

Bronfman and Raineri have both said that they seek to promote non-conventional renewable energy in the country, with an aim of attaining 20% of power from renewable sources by 2020. This figure would far exceed the 10% by 2024 mandated by law passed under the previous government of Michelle Bachelet.

"Nuclear is not renewable," Bronfman said. "But it has far more potential, and it requires much less space than any renewable source. It is competitive. Right now it could be more competitive than non-conventional renewables, which still need subsidies."

Former energy minister Marcelo Tokman, speaking earlier in the year, said that Chile could be ready for nuclear power to enter its energy mix by 2024 and need a total of five nuclear reactors by 2035.

"Given our projections, a nuclear reactor could be viable to begin operations in 2024. And between 2024 and 2035, we could see five 1.1GW reactors coming online," he said in January.

The discussion of nuclear power in Chile has been ongoing for decades, including analyses in 1968-70, 1975-78, 1981-83 and 1996-97. CCHEN last week, in fact, celebrated its 46th year in existence.

Chile's new energy climate, however, which must compete with rising fuel prices, worries over security of supply and the need to cut harmful emissions might make the current nuclear initiative in the country unique.

My notes

BNamericas delivers on-the-ground insight and trusted business intelligence to companies and investors active in and entering Latin America. Identifying opportunities early on and connecting clients with decision-makers across 12 industries, BNamericas is the edge your company needs in Latin America.

Ask us a question

Methodology & Procedures

Definitions

Projects covered include state-owned and private projects in the Infrastructure, Electric Power, Oil & Gas (excluding upstream), Water and Waste, and Mining sectors.

Where applicable, a project is considered as such until the end of construction and ramp-up to full capacity (with the exception of mining projects, where the date of commissioning signifies the end of the project). Projects must have a:

Data

For state-owned projects, initial information about the start date and estimates for completion and investment are taken from original signed contracts, along with addendums and annexes.

If original contracts cannot be obtained, information is taken from public documents, presentations, news articles from BNamericas archives, and external sources.

In cases where contracts are subject to approval by legislators, the start date is the date of the law or legislative approval.

In the case of private projects, information is taken from public sources, such as stock exchange filings, annual reports, company presentations, third party research and press releases.

In judging the timing of investment decisions for private projects, great care was taken to differentiate between large projects receiving environmental approval and proceeding directly to construction, and smaller projects where the investment decision hinges on securing financing.

Best care is taken to ensure that recorded data is correct at the time of entry and that each entry is backed with a relevant source.

The greatest care possible was taken to ensure consistency of information in order make a like-for-like comparison in project costs. Insofar as the figures rely on disclosure by the organization or company responsible, the figures can be considered to be conservative in nature.

No attempt was made to adjust figures for inflation during the course of research or for consideration of the time value of money.

Validation

In the case of state-owned projects, validation is carried out where possible with either a member of the consortium, EPC contractor, a relevant state agency or advisors to either party.

Currency

Projects costs are measured in US dollars. Where project costs are measured in a local currency, amounts are converted to US dollars at the date of the relevant announcement, signature or report.

Severity of deviation from original estimates

The severity of deviation from original estimates is defined according to set criteria.

Timing

Status

Condition

Ahead of time

95% of original estimate or below (measured in months)

On time

95% to 105% of original estimate

Minor changes

105% to 120% of original estimate

Medium changes

120% to 160% of original estimate

Major changes

Over 160% of original estimate

Budget

Status

Condition

Ahead of budget

95% of original budget estimate or below

To budget

95% to 105% of original budget estimate

Minor changes

105% to 120% of original budget estimate

Medium changes

120% to 140% of original budget estimate

Major changes

Over 140% of original budget estimate

Changes in Scope

Changes in scope beyond the start date are not accounted for.

Language definitions

Where guidance is non-specific as to dates for completion, the following is used. Project to be completed by 2018 = December 31, 2017 Project to be completed in 2018 = December 31, 2018